Question

Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick’s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: ___________________Practice Balls____________________________ Match Balls ____________Units ______________Selling Price_______________ Units________________ Selling Price January _____45,000_______________ $8.95__________________ 6,100_________________ $17.40 February _____63,000______________ $8.95___________________ 8,400________________ $17.40 March_______ 87,000______________ $8.95__________________ 13,000________________ $17.40 April_______ 105,000 ______________$8.95 ___________________16,000________________ $17.40 FlashKick requires ending inventory of product to equal 20 percent of the next month’s unit sales. Beginning inventory in January was 9,000 practice soccer balls and 1,220 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. FlashKick’s policy is that 20 percent of the following month’s production needs for raw materials be in ending inventory. Beginning inventory in January for all raw materials met this requirement. Required: Construct a direct materials purchases budget for each type of raw materials for the practice ball line for January and February of the coming year. If required, round your answers to the nearest cent. Direct materials purchases budget for polyvinyl chloride panels: FlashKick Company Direct Materials Purchases Budget - Polyvinyl Chloride Panels For January and February Polyvinyl chloride panels: _____________January ______________February Units produced ______________________?____________________? Direct materials per unit _______________?____________________? Direct materials for production___________?____________________? Desired ending inventory _______________?____________________? Total needed ________________________?____________________? Less: Beginning inventory ______________?____________________? Direct materials purchases _____________?____________________? Direct materials purchases budget for bladder and valve: FlashKick Company Direct Materials Purchases Budget - Bladder and Valve For January and February Bladder and valve:______________ January _____________February Units produced___________________?___________________? Direct materials per unit____________?____________________? Direct materials for production _______?___________________? Desired ending inventory __________?____________________? Total needed____________________?____________________? Less: Beginning inventory__________?____________________? Direct materials purchases _________?____________________? Direct materials purchases budget for glue: FlashKick Company Direct Materials Purchases Budget - Glue For January and February Glue: _____________________January_______________ February Units produced _______________?_____________________? Direct materials per unit_________?_____________________? Direct materials for production ____?_____________________? Desired ending inventory ________?_____________________? Total needed _________________?______________________? Less: Beginning inventory _______?______________________? Direct materials purchases______?_______________________?

Answer 1